In Regnum Online settlements are permanent communities, populated in this case by NPCs. There are three kinds depending on their size and the population living there.
Cities are the biggest settlements in the game. There are two in each realm and they protect key points, which means they are heavily defended. The first one is the capital, that stands right after the initiation zone. The second one acts as a base of operations near the wall, providing a place to prepare before going out, or somewhere to fall back into if the gates were to fall.
Towns are middle sized settlements that have lighter defenses than cities, but some guards protect their entries and centers. There are two in each realm located in less important locations. One is usually a port and the other one lies in the outskirts of the inner realm.
Villages are small settlements with few inhabittants. There are two in each realm's initation zone, one located near the starting area and the second one close to the teleporter that leads into the inner realm.